Brokerage Calculation Help!

New year Greetings to all!

Hi I am NRI and I have applied for PIS account with HDFC bank ( I had applied the same in April 2008 till now they did not opened and when asked them about it they have no answer hence i opened it again in dec09) hope I get it..

My question is

1. What are the Trading Restriction for NRI's as i have heard that we cant do day tradings... then if i buy shares today when will i able to sell?

2. Can i buy from BSE and NSE? and sell the same to BSE or NSE?
3. HDFC charges Consolidated Brokerage of 0.75% (including PIS & Demat Transaction charges) subject to minimum of Rs 100 per Trade. How does that calculated?

Thanks in advance for the replies and helps

Regards

I am not sure of this, but since you cannot do intraday, you will have to wait for the delivery, which typically is received after T+2 days. So if you buy on monday, you will get delivery after closing of wednesday session. Then you can sell from thursday onwards. Ask your broker if there is any product called 'buy today sell tommorrow' (BTST) for NRI.

Thanks a lot Bunny!

Your remaining questions:
Yes you can sell in BSE/NSE irrespective of where you have bought them for. Once you have delivery in your demat account, you can sell it on any stock exchange where the scrip is listed.

Since you cannot do intraday, you do not need to worry about BSE/NSE.

I don't have any idea about the brokerage structure through.

Thank you so much bunny!

Once more question. Since i would be having HDFC PIS account can you recommend a Trading Terminal or other sources from where I can view/get realtime quotes?

Thanks once again

Aneeliyo:

I have HDFCsec account and now it is a nightmare to deal with them as NRI. They have a stone age - VERY UN-USER friendly trading software with an overkill of security. It will log you out if you are inactive for 59 seconds and you have to start from scatch. If you make a mistake for the 3 rd consecutive time, your access will be disabled and you have to fill up a form and ask them to reset the passowrd and mail it to them with your original signature. They will reset the password in 10 business days and send the PIn numbers to you address in India. ( they will also charge you Rs.50.00, for doing this)

Unless you really want a bag of worms , don't evr think of opeing a trading account with HDFC.

Also they have their own names fore stocks. for example TTML is a known script. BUT HDFC uses HUGHESTELECOMEQ. They do not provide ant Charting software. So you may be looking TTML chart in a different platform and you have to trade in HUGHESTELECOMEQ. It is not fun and as your portfolio becomes big - it blows your brain.

Forget about opening the Demat and PIS account with HDFC. Go to AXIS bank - they are not cheap but their banking system is userfriendly and more importantly they have very user friendly customer servive.

These will be be Charges made by HDFC:
The Brokerage is 0.75 % of value of the trade +
Service TAX is 10.33% of the Brokerage +
Securities TAX is 0.12% of ( Value of the trade + Brokerage + Service Tax)

If you use a Third part broker like ShareKhan or IndiaBulls etc, You will have to open an Auxillary PIS account and you will be charges Rs 100/ per item/per transcation. While a third party broker may provide excellant services, but beware that Rs.200.00 are the hidden cost per trade.

What is Brokerage and how one should calculate the brokerage

The brokerage that some company charges you is 0.01-0.03 percent in intraday 0.01-0.03 percent in futures, and 0.1-0.3 in delivery. It varies from company to company.

A general table is given below how to calculate it.

So on Intraday we have total Brokerage of 0.08220% on each trade of buy and sell, and 0.05684% in futures buy and sell. It is to be noted that the total is applied to one side only here as the buy and sell are already summed. You can include your brokerage in the above table and get the total brokerage that is charged.

The brokerage structure mentioned in the above table is the hidden charges or we can say the additional charges other then brokerage which are always payable. Most of the broker wont tell you that…so whenever some broker tell you that they are giving you this brokerage then just add the above mentioned.

For example: -
If you a share in intraday (Same day square off) of XYZ company at price say 100. Then total price of the share you should consider is 100 X 0.08220% i.e. = 100.0822 Rs.
This means is that until and unless you sell the above share above 100.0822, you didn’t gained any profit, because until that part you have paid price of the share plus the brokerage. So if you sell the share on 100.50 then total profit you made is not 50 paisa but 100.50-100.0822 = 42 paisa appx.
Now this does matter to some new traders that what impact 10 paisa can make on a trade. But when we trade on high volume and large capital this 10 paisa makes the big difference.

Thanks Rajputz.

natrium, many thanks to you too to share your eperiences with me about HDFC sec, yes i agree with you its old fashioned and laboursum. I have got much much faster and interactive terminal here in Thailand for trading here in Thailand.

natrium, but compare to your brokerage charges mentioned here and on their website too they charged me different (I guess so) . Just to experience my first trading experience in India by HDFC I just tried one trading and i got this statement from them in this order

Exhange,Security ,YourBuys,MktRate,Brkg/unit, NetRate, Brkg ,Contract Value

BSE, NAGARJUNA FERTIL, 50 , 36.50, 0.50, 37, 25.00, -1850.00


What i cant understand is why do they charge brokerage/Unit? In this case .50 has been charged where do this .50 come from? as per their website their brokerage will be charged as following.

The Brokerage is 0.75 % of value of the trade + other which has been mention at the bottom of the report thats fine with me.

Can anyone help me please calculate this ?

Regards
Aneel

For Delivery transactions (buy or sell), the minimum brokerage is 0.5% of the cost of the stock. Since the cost of the stock is less than 100 Rs., you will be charged a minimum of 50 paise brokerage per stock.


Therefore, 50 * (36.5 + 0.50) = 50*37 = 1850.
This is the contract value. Calculation is based on the assumption that you purchased 50 stocks at Rs.36.50

Since the cost stock is less then 100 Rs.

I bought bhartiairtel

BHARTI AIRTEL LT 10 , 280.00 , 2.50 , 282.5 , 25.00 , -2825.00


In this case how come there charge me Rs. 2.50 /unit?

Thanks
Aneel